Unit 3 Flashcards
A mistake that concerns the future market quality of the object of the contract is
A mistake of value.
A mistake that occurs when both parties to a contract are mistaken about the same material fact is
Bilateral
If the delegation of duties are not performed, then the obligee can sue
The delegator and the delegatee
Steel Mill, Inc., makes an offer to Tom to enter into a contract to work as a mechanical engineer for a certain salary for one year, subject to a five-year renewal based on his performance. Tom accepts the offer. This is a valid contract because it includes
An offer and an acceptance.
Alyssa hires Bret to mow Alyssa’s lawn every Friday. Although they do not discuss the terms of payment, after each of the first three Friday mows, Alyssa pays Bret on Saturday. The payment term is
Implied
Donald is a minor. He can enter into any contract an adult can, provided
The contract is not one prohibited by law for minors.
A third person who receives an unintentional benefit from a contract even though the contract was not made for that person’s benefit is
An incidental beneficiary.
When an innocent party is fraudulently induced to enter into a contract, the contract normally can be
Avoided
Rue offers to pay Sari to deliver certain documents within thirty minutes. Sari can accept the offer only by completing the task within the deadline. If she does, Rue and Sari will have
A unilateral contract.
Alice tells an interested buyer, Mark, that her condo has no defects, but she knows that the plumbing is problematic. If Mark relies on Alice’s statements, then he is
Justified
The UCC contains Statute of Frauds provisions for
Sales and lease contracts.
When a breach of contract occurs, the innocent injured party can
Mitigate damages.
Steel Mill, Inc., agrees to deliver a certain quantity of steel to T-Bar Framing Corporation. The agreement states that delivery is to be within “9” days, although the parties intend “90” days. The seller cannot convince the buyer to amend the contract. The most appropriate remedy is
Reformation
Intoxicated, Efron enters a contract for the sale of his business, Freight Dispatch, to Gretel for less than its market value. This contract is enforceable if, at the time,
Efron understood the legal consequences.
Mel agrees to work as a freight broker for National Shipping, Inc. In determining whether a contract has been formed, an element of prime importance is the parties’
Intent
For a contact to be considered valid and enforceable, the parties to a deal must
Manifest their voluntary consent to the same bargain.
Under a contract with Valley View Villas, a residential development, Weng begins grading a terraced hillside. Halfway through the project, Weng asks for $5,000 over the contract price, claiming an increase in the “cost of doing business.” Valley View agrees. This agreement to pay more is
Unenforceable because Weng’s performance was a preexisting duty.
Rex contracts with Spicy Pizza to deliver its products. After the deal has been partially performed, both parties inform each other that they would like to cancel the contract. Rex and Spicy may rescind
Their contract to the extent that it is executory.
Field Construction, Inc., contracts with Mesa Ranch to build a new horse barn on Mesa’s property for which Mesa agrees to pay. If this is a valid contract, it will be partly because it includes the element of
Legality
Albert is a veteran. If Trevor, Albert’s guardian, induces Albert to sign documents giving him power of attorney to access his bank accounts, Trevor would be exerting
Undue influence
The remedy for a seller’s breach of a contract for a sale of real estate is
Specific performance.
Allen promises to pay Barb, his niece, $5,000 if she obtains her degree at City University, where she is in her third year. Barb graduates. Allen must pay Barb because
Barb obtained a degree at City.
Which of the following is an element that must occur for a fraudulent misrepresentation?
Intent to deceive.
Cindy, a real estate agent, sells her friend Doug’s house without charging a commission. In return, Doug promises to give Cindy $1,000. This promise is not an enforceable contract because
The house has already been sold—the consideration is past.
Kent tries to start his car with no success. He yells that he will sell the car to anyone for $10. Livy, a passerby, hears Kent’s yell. This is not an effective offer because it lacks
Serious intent.
The additional terms automatically become part of the contract unless one of the following conditions arises
The new or changed terms materially alter the contract.
Cathy agrees to sell her Daily Donut shop to Ernie. In the agreement, there is a covenant not to compete that prohibits Cathy from operating a donut shop within a certain distance. If the restriction is unreasonable, a court will most likely
Reform the covenant.
Dale’s Uncle Ed tells Dale, “If I feel you deserve it at the time, I will give you a new car when you graduate from college.” Ed’s promise is
Illusory
Only a mistake of fact makes a contract
Voidable
